Legislature(2005 - 2006)BUTROVICH 205
03/03/2005 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB42 | |
| SB40 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 40 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 42 | ||
SB 40-KUSKOKWIM PORT AUTHORITY
1:48:48 PM
CHAIR HUGGINS announced SB 40 to be up for consideration. He
recognized Mathew Nickoli.
1:48:54 PM
MATHEW NICKOLI, President and CEO, Calista Corporation, spoke
via teleconference in support of SB 40. Calista is looking into
financing for infrastructure projects. Calista owns 6.5 million
acres of subsurface property. Calista has aggressively marketed
for exploration. As a result multiple mineral companies have
invested over $65 million. Mineral mining has been successful in
the past. SB 40 would have a major impact on the regional
economy. Transportation and energy are two major issues that
need resolved. The port in Bethel is maximized in the summer
months and cannot meet the needs of Donlin Creek development.
1:52:36 PM
Placer Dome can finance a port on their own but the region must
be involved for economic reasons. Calista wants to build a trust
between all participants and form a regional planning group
under SB 40 and work with all of the stakeholders. The group
would look at all the projects together keeping in mind the
subsistence activities of the region. Development is new to the
region and a regional planning group is needed to manage all the
projects. An alternative tax-exempt financing mechanism would
allow the stakeholders to take part in the most monumental
development project to take place in the region. Calista wants
to address financing alternatives to the project.
1:55:43 PM
When all of the resources at Donlin Creek are depleted and the
money companies leave, they want to have a financing structure
that would continue to bring in new, long-lasting projects. One
reason Calista seeks to have a port authority is because they
foresee the need for a port and road system to receive cargo and
fuel for transit up the Kuskokwim River. On many occasions, sea-
going barges have been stuck for weeks at a time just above
Napakiak.
1:57:30 PM
Donlin Creek will need transportation infrastructure that can
support the movement of 150,000 tons of construction material
and 110,000 tons of supplies. Calista anticipates providing many
jobs for its shareholders from the infrastructure.
1:58:41 PM
Due to economies of scale, sea, river and land transportation
costs will drop. Diesel and heating fuel will become economical.
1:59:39 PM
Borough formation is a politically sensitive issue. Calista
wants to start with a port authority because they see it as a
way to bring all the stakeholders together to address the
financing needs of the project and to assist with its
development.
2:01:05 PM
A community meeting with Napakiak showed support from the
community.
2:02:05 PM
Calista expects Placer Dome to complete its work to determine
the feasibility within a year or so.
2:02:44 PM
MR. NICKOLI said borough formation would take too much time to
move forward with development. He asked for legislative help and
hoped that Placer Dome would work with Calista for the
development of economic projects.
2:03:55 PM
Calista is trying to take a global approach to developing the
region to become prosperous. He summarized with support for SB
40.
2:04:37 PM
SENATOR COWDERY asked Mr. Nickoli whether he heard prior
testimony on the bill.
MR. NICKOLI responded he was in Washington DC but he was briefed
on the testimony.
SENATOR COWDERY noted there was extensive testimony from the
people of Bethel that was not positive. He asked the number of
villages represented in the proposed area.
MR. NICKOLI informed the immediate impact would be to Crooked
Creek. There are 19 total villages that would be affected on the
transportation route.
2:06:37 PM
SENATOR COWDERY asked whether the plan was to ship all the ore
or to do processing on site.
MR. NICKOLI said there was no determination yet. Placer Dome has
identified that they want private project financing.
2:10:41 PM
MR. NICKOLI added the negative testimony against the bill is not
representative of the region.
SENATOR COWDERY asked the number of people in the proposed area.
MR. NICKOLI responded approximately 9,000.
2:15:29 PM
SENATOR KOOKESH asked Mr. Nickoli whether he had discussions
with Kuskokwim Corporation.
MR. NICKOLI advised they presented a resolution at their January
meeting to address the multiple issues that affect Donlin Creek.
Their board decided not to take up the memorandum of
understanding that Calista wanted to move forward. The multiple
issues are business development, subsistence protection,
sustainability, remediation and land use, energy development,
and transportation.
2:18:07 PM
SENATOR KOOKESH asked whether there has been further discussion
on the memorandum of agreement and whether he was planning on
meeting with them.
MR. NICKOLI said he emailed the president so they have had
contact. Calista would like an agreement with Kuskokwim
Corporation.
2:19:43 PM
CHAIR HUGGINS suggested Mr. Nickoli contact his state
representatives for assistance.
2:27:14 PM
CHAIR HUGGINS asked the likelihood of putting a planning group
together.
MR. NICKOLI expressed confidence that it would happen. He added
the Kuskokwim River is a major river that provides sustenance to
the people. The impact of the Donlin Creek project would have a
tremendous affect on the people.
2:32:10 PM
CHAIR HUGGINS asked Mr. Nickoli to describe how mine would
proceed if the port authority doesn't happen.
MR. NICKOLI asserted Placer Dome could construct it but
landowners need the other projects to serve the people when the
gold is gone.
2:34:51 PM
MR. NICKOLI added SB 40 would open the door for economic
development. Crooked Creek residents support the project.
Kuskokwim Corporation would also benefit.
2:38:40 PM
CHAIR HUGGINS asked him to characterize the impact factors along
the river for economic development.
MR. NICKOLI said fisheries have always sustained jobs in the
region. Federal subsidies have created jobs and the health
corporation employs over one thousand people but those are
federal monies coming in. He said he is thinking of private
money. Since he has been president he has heard from the people
they want resource development from private companies. Mining
and resource development are the key.
2:42:03 PM
SENATOR COWDERY asked the life of the Donlin Creek project.
MR. NICKOLI speculated a 20-30 year life.
2:43:20 PM
SENATOR COWDERY stated it would be a big asset if it happened.
He asked the reason that Placer Dome has been silent.
MR. NICKOLI said last year they wrote a letter on another port
authority because Calista asked them to. Placer Dome feels this
is a political issue and they don't need a public port. They
could do the project on their own.
2:49:02 PM
SENATOR COWDERY asked him to contact the people who are opposed
to SB 40 and turn them around.
MR. NICKOLI said, "We will."
2:49:21 PM
CHAIR HUGGINS asked Mr. Nickoli to act as an energizing force to
bring the community together on SB 40.
MR. NICKOLI invited legislatures to visit the impacted villages.
2:52:12 PM
MR. MAX ANGELLAN, testified via teleconference in support of SB
40. He said he lives in a village that is 20 miles east of
Bethel and he is concerned about the cost of living in the
future.
2:59:04 PM
MR. THOR WILLIAMS offered his support on SB 40.
CHAIR HUGGINS asked for a resolution from the City of Bethel.
SENATOR COWDERY asked about commerce on the river in winter.
MR. WILLIAMS said trucks move up and down the river in winter on
ice that is 3-4 feet thick.
CHAIR HUGGINS held SB 40 in committee.
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